Google Drive indeed can save an ‘unlimited’ number of files. However, it depends on how Google Drive is set up. See the image below.

If you are in “Mirror Files” mode – Google Drive is the same size as the maximum capacity of your hard drive. The files in the cloud are the exact ones as in the computer.

“Stream Files” mode  - you can have files in the cloud and a link to them in a virtual drive on the computer – but it may take time to download when you need them if they are not on your computer.

Reference:

https://support.google.com/googleone/answer/10838124?hl=en

Google Drive - Stream Files vs. Mirror Files mode